Tail dependence risk exposure and diversification potential of Islamic and conventional banks

This paper undertakes a rolling window comparative analysis of risks for portfolios consisting of GCC Islamic and conventional bank indices. We draw our empirical results by employing canonical, drawable and regular vine copula models, as well as by implementing a portfolio optimization method with a conditional Value-at-Risk constraint. We find evidence of higher riskiness in the group of Islamic banks relative to the group of conventional banks across each of the financial rolling window scenarios under consideration. Specifically, a greater negative (nonlinear) tail asymmetric dependence is observed in the pairs of Islamic banks’ relationships. The results also show that the optimal portfolio model supports a clear preference towards the group of conventional banks in regard to risk minimization and diversification benefits.     

Spillovers and absorptive capacity in the decision to innovate of Spanish firms: the role of human capital

This paper investigates whether the existence of knowledge spillovers and the capacity of firms to assimilate them, which we relate with R&D intensity and some human resource management practices, are associated with the decision to innovate of Spanish firms. In order to do this, we employ data from the ‘Central de Balances’ database, which covers both manufacturing and services firms during the period 2003–2007, and use an estimator proposed by Wooldridge [2005. Simple solutions to the initial conditions problem in dynamic nonlinear panel data models with unobserved heterogeneity. Journal of Applied Econometrics 20, no. 1: 39–54] for dynamic random effects discrete choice models. The empirical exercise provides evidence on the positive link between spillovers and the innovative behaviour of companies, not just for the knowledge generated in the same industry, but also for that generated in the same region or by the public sector. Moreover, this link is stronger for those firms with a higher capacity to absorb those spillovers. This ability not only works through firms’ R&D capabilities, but also through factors such as the quality of the labour force, the share of temporary employment and the amount of resources spent in training. In addition to these factors, we find that innovation performance exhibits a high degree of inertia. Further, some other observed firm characteristics, such as size, sales growth, export behaviour, sector capital intensity or financial structure variables, are also found to be relevant determinants of the likelihood of innovation.     

Market Structure And The Adoption Of Innovations: The Case Of The Spanish Banking Sector ‡

This paper is an empirical study of the determinants of adoption time for the teleprocess terminal by Spanish commercial and savings banks. The explanatory variables include the characteristics of the adopting firms, size, and in the case of the savings banks, the structure of the market and concentration. The results indicate that the speed of adoption is maximized at intermediate levels of size and market concentration, confirming one theoretical prediction of models of diffusion: namely, that adoption time is minimized at intermediate levels of market concentration.     

Learning before the storm: Modeling multiple stakeholder activities in support of crisis management,a practical case

The severe consequences of a Critical Infrastructure (CI) crisis demand continued research directed toward proactive and reactive management strategies. Despite the best efforts of governments and communities, the diversity of stakeholders, conflicting demands for resources, and a lack of trust among organizations create complexities that limit the effectiveness of the response. This paper identifies four specific problems that appear to reoccur when CIs are challenged: heterogeneity, multiple and inconsistent boundaries, resilience building and knowledge transfer and sharing. A combination of collaborative modeling and software simulation methodologies is proposed in order to identify the interrelationships among diverse stakeholders when managing the preparation for and reaction to a CI crisis. This approach allows experts to work together and share experiences through the modeling process which can lead them to a better understanding of how other organizations work and integrate different perspectives. In addition, simulation models enable domain experts to understand the consequences of certain policies in the short and long terms, thus improving the crisis managers' knowledge for future crisis situations. This paper presents a practical case of a hypothetical crisis in the CI sector and the approach used in order to deal with the four problems identified above.     

Convergence in OECD countries: technical change,efficiency and productivity

The aim of this study is to analyse labour productivity convergence in the OECD countries over the period 1975-90. A nonparametric frontier approach is used to calculate the Malmquist productivity index. By breaking it down, the contribution in the growth of labour productivity of technical progress, of changes in efficiency, and of the accumulation of inputs per worker are quantified. Unlike other studies, the results obtained show that technical change has worked against labour productivity convergence, since it has always been greater in the countries with higher labour productivity.     

Does oil corrupt? Evidence from a natural experiment in West Africa

This paper explores the oil discovery announcements in Sao Tome and Principe (1997-1999) to assess the role of natural resources in determining corruption. For this purpose, we use a natural experiment framework which contrasts Sao Tome and Principe to Cape Verde, a control West African country sharing the same colonial past and important recent economic and political shocks. Our measurement is based on tailored household surveys we conducted in both island countries. The unique survey instrument was retrospective and used personal histories to elicit memories from the respondents. We analyze changes in perceived corruption across a wide range of public services and allocations. We find clearest increases on vote buying, education (namely in the allocation of scholarships) and customs, ranging from 31 to 40% of the subjective scale. We interpret these findings as symptoms of increased competition for core state resources.     

Green marketing strategies: an examination of stakeholders and the opportunities they present

As green marketing strategies become increasingly more important to firms adhering to a triple-bottom line performance evaluation, the present research seeks to better understand the role of “green” as a marketing strategy. Through an integration of the marketing, management, and operations literatures, an investigative framework is generated that identifies the various stakeholders potentially impacted through the environmentally friendly efforts of a firm. Specifically, the inter-connected nature of the core business disciplines of marketing, management (both strategy and human resources), and operations are examined as controllable functions within an organization from which strategies can be enacted to affect a firm’s stakeholders. The prior research in these areas is examined to identify potential research opportunities in marketing while also offering a series of representative research questions that can help guide future research in marketing.     

Modeling the European cycle with factor structure and regime switching

This paper compares the stylized facts of the European growth cycle stemming from the Gross Domestic Product (GDP) of the European Monetary Union with an unobserved common factor derived from a dynamic factor model with regime switching. The aim of this paper is to provide empirical evidence about the most adequate indicator for short-term monitoring of the cyclical state of the European economy. Previous versions of this article have been presented at the 55th International Atlantic Economic Conference (Vienna, Austria, March 12–16, 2003) and at the VI Encuentro de Economía Aplicada (Granada, Spain, June 5–7, 2003). The author would like to thank the conference participants and an anonymous referee for their comments and suggestions.     

Rate of Return Regulation: The Case of Spanish Ports

An original model is put forward in this article to explain and consider the behavior of some of the most important public services in Spain. The cost function approach and the input distance function approach are used to estimate the existence of overcapitalization as a result of rate of return regulation. The results show that overcapitalization generated by this regulation is too significant not to be taken into account.